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View Full Version : Amazon.com to begin collecting sales tax on N.J. orders next year




Warrior_of_Freedom
05-30-2012, 03:42 PM
http://www.nj.com/news/index.ssf/2012/05/amazoncom_to_begin_collecting.html



TRENTON — Gov. Chris Christie announced today that Seattle-based internet retail giant Amazon.com will begin collecting sales taxes from New Jersey residents next year and seek the state's financial help to build two distribution centers in New Jersey.

Christie said the two million square foot facilities would bring 1,500 full-time jobs to the Garden State, along with many other part-time and temporary jobs.

Before the news conference, state Sen. Raymond Lesniak (D-Union), who sponsored a bill in the Senate that would have granted the company a temporary exemption from collecting sales taxes, said: "Amazon has signed a settlement agreement with the treasury to begin collecting sales taxes as of July 1, 2013. That’s a good thing because that provides a date certain where Amazon will no longer have a competitive advantage over our local retail outlets."

The company’s agreement with the Department of Treasury makes Lesniak's his bill unnecessary.

Amazon has been in talks for months with the Christie administration to open two 1.2 million-square foot warehouses in New Jersey, but any decision was delayed as the company sought a two-year sales tax holiday.

“The other part of it is Amazon is then announcing its intention to create a huge warehouse distribution center in New Jersey and to apply for EDA financing in conjunction with that,” said Lesniak. "That’s OK, but it doesn’t mean a lot unless it actually happens.”

Amazon currently collects no sales taxes from New Jersey customers, but residents are supposed to pay the tax when they file their tax returns. However, few do. The company would be required to collect the sales tax if they built warehouses.

The Assembly passed a bill that would grant the company an exemption from collecting sales tax through July 1, 2013, but Lesniak’s bill stalled in the Senate.

It is likely Amazon will choose to build near Turnpike Exit 8A in Mercer or Middlesex county.

Your opinions?

I think Amazon is going to lose a lot of New Jersey customers, because a lot, like me, buy there for free shipping + no tax.

tttppp
05-30-2012, 03:47 PM
Why is New Jersey helping Amazon build new distribution centers? I thought republicans were against picking winners and losers. I wouldn't mind the government subsidizing a business for me and giving me free money.

Anti Federalist
05-30-2012, 03:54 PM
Your opinions?

I think Amazon is going to lose a lot of New Jersey customers, because a lot, like me, buy there for free shipping + no tax.

You'll be hard pressed to find a state where Amazon and other online retailers do not collect state taxes.

Unless you live in NH or a hand ful of other states.

Warrior_of_Freedom
05-30-2012, 04:05 PM
You'll be hard pressed to find a state where Amazon and other online retailers do not collect state taxes.

Unless you live in NH or a hand ful of other states.
The whole system is broken.
Ok, for example. I wanted to buy something for someone as a gift, who lives in NY. Amazon already charges sales tax for NY. However, I'm buying the product from NJ to send to NY, why the hell should I pay NY sales tax? I could just have it sent to my NJ address and mail it myself to NY, but that negates any costs saved from no sales tax. Even if NJ and NY sales tax is collected, why should NY get my sales tax for something I'm buying while residing in NJ, but being shipped to NY?

Keith and stuff
05-30-2012, 04:29 PM
I've been seeing similar stories in state after state. Of course, this isn't the case in AK (at least yet), MT, DE or NH. Look for it to eventually to be standard everywhere. BTW, just because Amazon isn't currently collecting taxes in a bunch of states, doesn't mean that state government doesn't demand the taxes.

jbauer
05-30-2012, 05:07 PM
They sent out an email to us in TN stating what we bought and how much. It also said the law is that we report to the state of TN how much $'s we bought and submit it to the TN dept of revenue.

On the bottom of the email it said that they "amazon" will not report purchases to the state of TN.

They also are going to build a distrabution center here soon so at some point it becomes a moot point.

John F Kennedy III
05-30-2012, 05:09 PM
You'll be hard pressed to find a state where Amazon and other online retailers do not collect state taxes.

Unless you live in NH or a hand ful of other states.

Yeah they collect taxes in most states now.